= BOTSWANA EXAMINATIONS COUNCIL Botswana General Certificate of Secondary Education v CANDIDATE [ NAME CENTRE CANDIDATE NUMBER NUMBER BUSINESS STUDIES 0615/02 Paper 2 October/November 2017 2 hours Candidates answer on the Question Paper. No Additional Materials required. READ THESE INSTRUCTIONS FIRST Write your Centre number, candidate number and name in the spaces provided at the top of this page. Answer all questions. Write your answers in the spaces provided on the Question Paper Do not use staples, paper clips, highlighters, glue or correction fluid The number of marks is given in brackets | | al the end of each question or part question, Calculators may be used For Examiner's Use 1 2 Total This document consists of 11 printed pages and 4 blank page Turn ov © BEC 2017a 2 Baagisi Construction atter the Canary Baagisi Construction was established as a closed corporation a few years ago — 7 ustry. It operates in most areas of Botewans and tne noticed a marketing gap in the construction ind! ese is government, where the company 6 engages Head Office is in Gaborone. Its main market construction and renovation of government infrastructure such as buildings and roads. lt buys some of its materials across the border. The management has adopted an autocratic leadership style. Recently the Human Resource Manager dismissed the site manager after he failed to turn up for work without reasons The site manager reported the matter to the labour office. This created a vacant post which had to be fitted. The Head Office mostly uses telephone to communicate with the site managers in different stations, The company won a tender to construct the main road connecting two major villages. The project is due to start in 6 months' time. The government carried out a cost-benefit analysis before the project could be undertaken. To be able to carry out the project, the business had to seek finance from a bank. The bank requested for a cash flow forecast. The company projected a negative cash flow for the first three months. Baagisi Construction is considering entenng into a joint venture with a company producing cement or starting to produce its own cement. There is need to thoroughly evaluate this in order to make a valuable decisionExplain the meaning of the following terms as used in the case study, (a) Market (4) (b) Cost-benefit analysis iS sone fa) ‘urn over 0615/0207 m4 2 (a) Explain two ways in which the company may be affected by the changing exchange rates. Way 1:.. Explanation: .... Way 2: .. Explanation: 4) (b) Explain one advantage and one disadvantage of adopting the autocratic leadership style. Advantage: ....... Disadvantage [65 {e) The Head Office decided to use a telephone to commun Evaluate the use of a telephone by the Head Office to commune managers 0615/02/07 BEC 2017 cate with the site managers ate with the site (8) [Turn over3 (@) Explain two roles of Baagisi Construction n the economy of Botswana Role 1 | Explanation: .. | Role 25 ssesccssssnentes | | | Explanation: ....... (4) (b) Discuss the importance of innovation and change to Baagisi Construction. 6) BEC 2017 0615/02/0"N17 emer@BEC 2017 Way 2: (0615/02/01N/17 a) (ii) Discuss two ways ; environmental 7 Which Baagisi Construction may use to minimise | [Turn over(a) (b) Due to increased competition in the construction industry, the company has adopted the use of specialised machinery | Explain two ways in which the use of specialised machinery may help the company to remain competitive. | Way 1: . Way 2: ..... 14) Baagisi Construction deals with other businesses and obtains various documents in its transactions, Explain how the company may use the following documents to improve efficiency in its operations. (i) Quotation (3) (ii) Delivery note {3) Bec 2017 o515;02/01N/17. | ferme (c) The government us inBonwenn }e8 taxes and government spending to Influence economic activities | t Explain the impact of the following policies on the activities of Baagisi Constructio (0) Decrease in government Spending (ii) Increase in taxes ‘urn over 0518021017 aa 10 5 Assite manager was dismissed and another one was recruited externally (a) Analyse the effectiveness of recruiting thi ite manager externally. (6) (b) Write a report to the Director, elaborating the effects of the dismissal of the site manager on the business. {8} BEC 2017 5102/0017" {e) Baagisi Const truction has ct produong convent or ster peomare naraen coments Joint venture with a comoany meri Advise th @ Management on which option to adopt, Justify your answer. (© BEC 2017 (0615/02/00NI17 (10)12 BLANK PAGE Permission to reproduce TeTE-WhETE Id party owned materal protected by copyron Inluded. Nas Deen SOWQH and Ceed where posse Every feasenaie efor has deen made by the pubishe (BEC) 10 ace cpyrgn Fader, Bt any Yams equtngGearace ave unin Been mesos, he publshe wb pleases © make amends te eases! posable oppatny © BEC 2017 051510201017